Fitch Ratings has downgraded Dangote Industries, the conglomerate of companies owned by Africa’s richest person Aliko Dangote, noting a decline in the group’s liquidity position amid operational and financial underperformance.
The latest review of the creditworthiness of the corporation saw Fitch lower its National Long-Term Rating to ‘B+(nga)’ from ‘AA(nga)’ and placed the ratings of the group on rating watch negative (RWN).
The slide in Dangote Industries’ creditworthiness was also influenced by naira devaluation as well as a lack of “contracted backup funding to repay its significant debt facilities maturing on 31 August 2024,” according to the New York-based firm.
“We view the lack of DIL’s audited accounts for 2023 as a corporate governance issue,” it said.
“The RWN reflects uncertainty related to the group’s ability to refinance maturing debt.”
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